Market Review
In the past two weeks, the top five companies in the A-share textile and garment sector were duoai, Zhenjing, Modern Avenue Group Co.Ltd(002656) , Annil Co.Ltd(002875) , Zhejiang Golden Eagle Co.Ltd(600232) . In the past two weeks, the top five companies in the textile and garment sector of Hong Kong stocks were Sijie global, taobo, Jingyuan international, Bosideng and deyongjia group.
Data tracking
In December 2021, clothing retail sales in that month were – 2.3% year-on-year and – 1.8% month on month; Online retail of wearing goods was + 8.3% year-on-year and – 2.8% month on month; China’s textile export value was + 16.2% year-on-year and + 7.8% month on month; China’s garment export value was + 14.5% year-on-year and + 3.3% month on month. On February 18, 328 cotton price index (yuan / ton) was 22941, a month on month increase of + 1%; The price difference between domestic and foreign cotton (yuan / ton) is 1694. On line data, Adidas tiktok outdoor sports Adidas maintained first in January. Men’s clothing category Hla Group Corp.Ltd(600398) rose to No. 9; Women’s clothing category tennie weenie / Senma rose to No. 5 / 26. From the sales data of tmall Jingdong online, the performance of the sports sector is relatively dominant; In terms of tmall’s official flagship stores, the top five brand stores in terms of growth include China’s Li Ning, kolonsport, lululemon, Salomon and archeryx. The sales of Archaeopteryx were 3057, 3147, 9309, 1020 and 39.95 million yuan respectively, an increase of 139%, 74%, 73%, 68% and 66% respectively.
Industry dynamics
The Winter Olympics will drive 300 million people to participate in ice and snow sports; A number of overseas companies such as Hermes, Kaiyun group, tapestry, crosss and Canada goose released financial data, and their sales increased significantly; Sheen’s holding company moved to Singapore.
Risk tips
\u3000\u30001. Repeated impact of the epidemic; 2. The vicious competition of enterprises intensifies; 3. The global economic recovery is slower than expected; 4. The exchange rate and the price of raw materials fluctuate greatly.
Investment advice
The Winter Olympics ended perfectly and continued to be optimistic about the potential improvement of relevant brands and the growth trend of sports consumption; Manufacturing enterprises benefit from the situation of sufficient orders and tight supply. The fundamental trend is relatively better. They are optimistic about leading companies and high value-added manufacturing enterprises with growth certainty and bargaining power. We mainly recommend Shenzhou International, Anta sports, Li Ning and Tebu international for Hong Kong stocks, and Huali Industrial Group Company Limited(300979) , Zhe Jiang Taihua New Material Co.Ltd(603055) , Zhejiang Weixing Industrial Development Co.Ltd(002003) for a shares.
